Govt eyes twin legal tracks for Air India, Indian merger

With the empowered Group of Ministers (EGoM) clearing the way for merger of Air-India (AI) and Indian, the government is considering two legal options to merge the state-owned carriers under the Companies Act of 1956.

The first option envisages the ministry of company affairs passing an order, under Sections 391-394 of the Companies Act, on an application filed by the board of directors of the two companies. This route would require the two carriers to obtain creditors’ approval — “majority” in number and 3/4th in terms of value.